One way is to look at words related to the town's characteristics. Like if it's a peaceful place, use words like 'serene' or 'tranquil'. Or draw inspiration from nature, like 'Mountainview' or 'Riverdale'. You could also use made-up words that just sound right to you.
One method is to think about the theme of your story. If it's a spooky story, names like 'Shadowvale' or 'Grimwood' would work well. 'Shadowvale' implies a place filled with shadows and mystery, while 'Grimwood' makes you think of a dark and foreboding forest near a town. Also, you can use alliteration, such as 'Sunnyvale' or 'Silent Springs'. These names are catchy and easy to remember.
One name could be 'Starfall'. It makes you think of a place where stars seem to fall, which could be a very magical and enchanting town. 'Evergreen Grove' is also a great name. It suggests a town surrounded by evergreen trees, indicating a place that stays green all year round, perhaps a bit secluded and full of nature. 'Silverthorn' is another name. The 'silver' gives a sense of something precious or magical, and 'thorn' adds a bit of an edge, making it a town with a bit of mystery.
Authors often draw inspiration from various sources. They might use elements of real - world languages. For example, combining words that sound exotic or old - fashioned. They could also base it on the setting or theme of the story. If it's a spooky story, they might come up with a name that has a bit of a sinister sound to it.
In a fantasy world, 'Crystalhaven' could be a town where precious crystals are found in abundance. It has a sort of ethereal and magical quality. 'Mystic Grove' is also a great name. It makes you think of a grove filled with magic, perhaps with strange plants and mysterious creatures. And 'Starfall' could be a town that was founded when a star fell from the sky, giving it a very special and otherworldly origin.